Wednesday, December 21, 2011

The Legacy of North Korean Communism

While many in the OWS crowd are longing for a Communist takeover of the United States so all the nation's wealth can be distributed equally among the comrades, they would be well instructed to look economic legacy of the two Koreas. The chart above shows another comparison of the economies of North and South Korea, based on data from Angus Maddison. Between 1950 and the early 1970s, real GDP per capita in South Korea was exactly the same as in North Korea. As South Korea implemented market reforms, its economy and output per person started consistently rising while economic conditions to the north stagnated. After forty years of market-based growth, real GDP per capita is now about 17.5 times higher in South Korea compared its norther neighbor.

Night on the Korean Peninsula

Grouch: So shouldn't the OWS crowd be protesting against crony capitalism and excessive government intervention in the economy in favor of more free market reforms for their own future prosperity and success?

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